U.S. credit usage for essential expenses

Recent surveys indicate a growing reliance on credit among U.S. small business owners and consumers to manage essential costs.

A study of small and medium-sized business owners found that 41% regularly use personal credit cards for business expenses, while 15% rely on personal loans. The data also highlighted significant challenges in accessing formal credit, with 37% of owners encountering problems during loan or line-of-credit applications.

Parallel trends are observed among U.S. consumers with significant unsecured debt. Research shows that 66% of these individuals used credit cards for groceries in the past year, and many use credit to cover gas, utilities, and housing. Approximately 30% of respondents report relying on borrowing to manage a typical month, suggesting credit is increasingly used for routine operational costs rather than just emergencies.

Newer data identifies groceries as the primary driver of credit card debt among Americans. Research by Atomik Research for Accredited Debt Relief found that 66% of adults with at least $10,000 in unsecured debt used credit cards for groceries in the past year, surpassing transportation (47%) and utilities (45%).

Drive Research suggests that 70% of individuals carrying credit card debt attribute the majority of their balances to daily expenses rather than large, planned purchases, a trend particularly prevalent among renters (72%). This financial strain has created a cycle of reduced spending; 45% of respondents reported cutting back on necessities like food or household essentials to manage debt payments, a figure that increases to 54% among teachers.